•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   
•    EYEWITNESS   

The embattled rector of the University of Indonesia has promised to respond to findings by state auditors of potential state losses of Rp 45 billion ($5 million) arising from possible illegal activities, poor financial management and abuse of power.

UI rector Gumilar R. Somantri said at the weekend that his office would first have to study the findings by the Supreme Audit Agency (BPK) before submitting its response within 60 days.

“We only received the report on Friday and we’re now going through it to gauge exactly what was audited and what method was used,” he said.

“Obviously it’s important that we respond to the BPK’s report because the findings have highlighted points that we can improve on in the future.”

In presenting its findings to legislators last week, the BPK cited two cases where the state-owned university had allegedly mismanaged its funds and assets, both under Gumilar’s management. “We cannot let a university, a symbol of intellectualism and morality, get away with such carelessness,” Rizal Djalil, a BPK official, told the House of Representatives.

The first case involves 23,583 square meters of land on Jalan Pegangsaan Timur in Central Jakarta that is managed by the university but formally owned by the government.

The BPK, Rizal said, found that the university had leased the property to an undisclosed third party last year.

He said the university had received a down payment of Rp 15 billion from the third party and was due to receive Rp 607 million annually for the next 25 years.

“The Finance Ministry had no knowledge of this deal,” Rizal said, adding that the university had violated two government regulations with the deal. The Finance Ministry oversees the management of all state assets.

Rizal said the second case involved the construction of an education hospital at the university’s Depok campus. The construction was financed by loans from the Japan International Cooperation Agency.

After the project fell behind schedule and over budget, the government was forced to pay 38.5 million yen ($500,000) to the JICA for breach of contract.

Gumilar said he was prepared to be questioned by law enforcement officials should the audit lead to a criminal investigation, but he stressed that the BPK’s findings were inconsistent with an independent audit by a certified public accountant — appointed through an open tender — that gave the university’s finances for 2008 to 2010 a clean bill of health.

“We consistently push the creed of good governance here at UI through greater efficiency, effectiveness, responsiveness, transparency, accountability and participation of stakeholders,” he said.

The BPK findings add to long-standing allegations of corruption inside the university during Gumilar’s tenure.

In November, an organization calling itself Save UI submitted a report to the Corruption Eradication Commission (KPK) outlining what it said were instances of graft in the university. Gumilar has insisted the university manages its funds professionally and transparently and is ready to be audited by outside bodies.

Separately, Education Minister Muhammad Nuh said the audit of UI should not be seen as a lack of faith by the government in Gumilar’s administration, pointing out that the audit was routine and other universities were also being inspected.

Antara